Advice pplease - online business tax

infoinfoinfo

I am too confused already about simple thing.

Set up:

I will register business and for VAT in Ireland.
I will buy goods from UK wholesale supplier.
I will sell goods online on my website to consumers in Ireland.

Questions:
As VAT registered, i purchase goods from UK without tax?
When i sell goods on my site to consumer, i have to pay 23% VAT from full price customer pays?
After i sell goods and pay this 23%, i count my clear profit -> and i have to pay another tax on that profit? And how much?

Please somebody enlighten me on the above as i cant find clear answer.

Many thanks for any help

barneystinson

infoinfoinfo wrote: »

I am too confused already about simple thing.

Set up:

I will register business and for VAT in Ireland.
I will buy goods from UK wholesale supplier.
I will sell goods online on my website to consumers in Ireland.

Questions:
As VAT registered, i purchase goods from UK without tax?
When i sell goods on my site to consumer, i have to pay 23% VAT from full price customer pays?
After i sell goods and pay this 23%, i count my clear profit -> and i have to pay another tax on that profit? And how much?

Please somebody enlighten me on the above as i cant find clear answer.

Many thanks for any help

That would be income tax Ted. Or corporation tax if you're a company.

TBH I'm not sure you should be starting a business yet if you don't even know what income tax is.

infoinfoinfo

I called it another tax because still dont know if i go sole trader or ltd. But with 12.5 corp. tax will probably go ltd.

What i was trying to find out is, how is this done technically? Do i pay the VAT for sold goods once a year and in addition Corp. tax once a year? Or can this be done in one return?

To be completely clear, profit is after all VAT and everything is paid up, whatever is left, correct?

We all have to start somewhere

Also, can company have two objectives/activities? Say A) be reseller/trade and also disclosed agent involved intrade?

Thanks for any advice

Immy

My advice to you is as you seem to have a lot of information confused.

Your going to need an accountant at some stage, so why not go to one now and get the help you need so that the set up is correct and you have all the information you need to start.

Lost of accountants will give an initial consultation for free.

infoinfoinfo

Yea, i know, thanks.

I just wanted to get some basic info first.

Thanks for any qualified answer

GR3YFOXXX

infoinfoinfo wrote: »

Yea, i know, thanks.

I just wanted to get some basic info first.

Thanks for any qualified answer

If you do go as a ltd you will be taxed again when you pay yourself a salary.

infoinfoinfo

well, directors can work without salsry isn't it?

GR3YFOXXX

they can, but any form of extraction will be subject to Income tax

infoinfoinfo

so, say after i pay VAT on sold stuff, company will have profit of 10K, on that there will be 12.5tax, so after tax profit will be 8750 eur.

This will be in company, to take out cash, there will be another tax

if we take it out as salary, tax will be normal income tax & company alos pays PRSI etc..

so the profit can come down to maybe 8750 minus up to 41%

is that the correct set up?

GR3YFOXXX

infoinfoinfo wrote: »

so, say after i pay VAT on sold stuff, company will have profit of 10K, on that there will be 12.5tax, so after tax profit will be 8750 eur.

This will be in company, to take out cash, there will be another tax

if we take it out as salary, tax will be normal income tax & company alos pays PRSI etc..

so the profit can come down to maybe 8750 minus up to 41%

is that the correct set up?

In the absolute most basic sense, yes. In reality it is much more nuanced than that.

Marcusm

infoinfoinfo wrote: »

so, say after i pay VAT on sold stuff, company will have profit of 10K, on that there will be 12.5tax, so after tax profit will be 8750 eur.

This will be in company, to take out cash, there will be another tax

if we take it out as salary, tax will be normal income tax & company alos pays PRSI etc..

so the profit can come down to maybe 8750 minus up to 41%

is that the correct set up?

NOt really, if you paid out the full 10k as salary (less an appropriate amount for employer's PRSI), there would not be any profit on which to pay 12.5% corporation tax. You need to find a book on running a small business or meet with a local bookkeeper. You need to do VAT returns on a regular basis and you would need to be VAT registered before you buy your goods from the UK else you might find them more difficult to deal with.

SpaceTime

Registering for VAT is optional under a certain threshold of trade.

Worth checking out : http://www.revenue.ie/en/tax/vat/guide/registration.html#section3

It can be worth registering though if you're doing a lot of buying and selling. If you're providing a service for example, there's no real advantage to registering until you have to as you've no inputs other than your own time.